No no, Hyperkin announced last winter that the RetroN5 would be Android based, which meant emulation right off the bat. The only thing that's new news is exactly how it does that - ie. by dumping the contents of the carts to rom and then running those roms as any other emulator would.
As to where the RetroN5 fits in between the other options like Ouya, I think it would be unfair to prejudge the RetroN5, especially since it isn't out yet, and I've yet to try it. I wasn't and I still am not trying to suggest the Ouya is a better option, especially for everyone. I was specifically referring to those people who planned on buying a RetroN5 solely to run flashcarts. Compared with that specific situation, the Ouya would make a lot more sense than an emulator machine running roms off a flashcart not designed for an emulator machine.
The fact is, we simply don't know yet. It could be the preprogrammed database is used for game rom identification purposes so that it can automatically bring up gamegenie codes or perhaps box art. I suspect that hacks or homebrews or unlicensed games may still work, but just come up as unknown games. That's speculation as is everything else, because the system isn't out yet and Hyperkin hasn't confirmed anything on the subject.
Savestates are a given. Any emulator worth a damn has savestates. It's unheard of for an emulator not to offer savestates. *COUGHCOUGHWIIVIRUTALCONSOLE*
I doubt the RetroN5 will allow you to dump a rom to another medium. What would Hyperkin gain by allowing you to do that? It's not like they have any reason to do so, other than it would be nice.
Do...you have a Mario Advance 4 rom that has the e-reader stages? I bought the game on launch, but I never bought an e-reader. If you've got a rom that has those stages unlocked, that would be something that I'd be interested in. could you email me at satoshimatrix@hotmail.com? Thanks.